A Study On The Causes And Effects Of Xingyu's High Distribution

In September 2017,the Shanghai Stock Exchange released a research report entitled “Discussing the cash dividend policy should pay attention to the subsequent profitability”(SSE Research Report [2017] No.026).This research report focuses on the problems in the cash dividend distribution policy of listed companies in C hina.It points out that "individual companies have a tendency to excessive dividends.In particular,listed companies with high concentration of individual equity and strong profitability have overdrawn the company's growth through high dividends and harmed the interests of small and medium shareholders." They also named high equity concentration,The dividend ratio o f Xingyu Co.,Ltd."does doubt the rationality of the high proportion of dividends".Since the implementation of various policies to encourage cash dividends in China,the proportion of high paid dividends of listed companies has increased significantly,and if listed companies have more suitable investment directions and have excessive growth,excessive dividends will actually hurt investor value.Therefore,the deep-seated motivations of such companies and the effects brought by them are yet to be explored.Based on the above background,the problem to be studied in this article is the reason for the implementation of Xingyu Co.,Ltd.'s current dividend policy and the effect in the later period.This article first uses the normative research method to comment on the relevant literature of high-value cash dividends of listed companies,and obtains inspiration from the existing research results.Secondly,it uses the case analysis method to analyze the case study object Xingyu High Cash.Excavate objective reasons and analyze the late effects of high cash-outs from the three perspectives of financial performance,market response and corporate value,use the event research method when studying market responses,and finally make relevant suggestions for the problems found in the research.Through research,it is found that the high-level distribution of Xingyu Co.,Ltd.is currently subjective mainly due to high profitability,sufficient cash flow,high equity concentration promotion,controlling shareholder's rapid recovery of IPO costs,and executive self-interest reasons;objective reasons include the relatively high industry The maturity and signal to the outside world.Regarding the later effects,the research found that Xingyu's high dividend payout policy has increased the company's short-term debt repayment pressure on financial effects and affected the company's growth in some years,but improved its asset management ability.In terms of market response,investors in most years The payout policy has a positive attitude,and the market responds well.The market response is negative when the dividend payment rate drops significantly.Unlike previous research conclusions,Xingyu Co.,Ltd.used superraised funds to supplement liquidity in 2012.It is still relatively positive;in terms of value effects,its high payout dividend policy has indeed effectively improved the value of the enterprise,which validates previous research conclusions.Compared with most of the past,the empirical method is used to study the current behavior of listed companies.This article uses the case of Xingyu Co.,Ltd.to analyze the current situation,which enriches the existing research results.The research can answer the question of "the reasonableness of the high proportion of dividends is indeed doubtful" in the research report of the Shanghai Stock Exchange,and in the case analysis,put forward suggestions for the problems of Xingyu's dividend policy,and for companies with similar problems It has certain realistic and inspirational significance.